Fixed Investment in Cyprus
The Cyprus economy recorded an average growth rate of 6.0% in fixed investments in the decade to 2022, above the Euro Area average of 2.2%. In 2022, fixed investment growth was 7.8%. For more investment information, visit our dedicated page.
Cyprus Investment Chart
Cyprus Investment Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Fixed Investment (ann. var. %) | 6.9 | 6.0 | 1.9 | 9.0 | 11.1 |
GDP growth records quickest upturn in nearly two years in Q2
GDP reading: A second release confirmed that GDP growth picked up to 3.6% year on year in the second quarter from 3.5% in the first quarter, marking the fastest increase since Q3 2022. On a working-day and seasonally adjusted quarter-on-quarter basis, economic growth edged down to 0.7% in Q2 from the previous period's 1.0% expansion, marking the worst reading in a year.
Drivers: The annual upturn was broad-based, with private consumption, public spending, fixed investment and exports all improving. Household spending growth picked up to 5.1% year on year in the second quarter (Q1: +3.9% yoy), which marked the best reading since Q1 2023 amid a tighter labor market. Government spending accelerated to a 5.0% increase in Q2 (Q1: +4.1% yoy). Moreover, fixed investment bounced back, growing 11.1% in Q2, contrasting the 35.2% decrease recorded in the prior quarter, spurred by recoveries in machinery and transport equipment. On the external front, exports of goods and services increased 4.1% on an annual basis in the second quarter, which was above the first quarter's 1.6% expansion. That said, imports of goods and services rebounded 6.9% in Q2 (Q1: -12.2% yoy), marking the best reading since Q1 2023.
GDP outlook: The economy is likely to lose some momentum in H2 following a strong start to the year. Nonetheless, over 2024 as a whole, GDP is set to expand at a faster pace than in 2023, chiefly thanks to a rebound in exports amid healthier EU demand. The potential escalations of wars in the Middle East and Ukraine pose downside risks.
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Cypriot investment projections for the next ten years from a panel of 4 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable investment forecast available for Cypriot investment.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Cypriot investment projections.
Want to get access to the full dataset of Cypriot investment forecasts? Send an email to info@focus-economics.com.
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